2.19 Provisions, Contingent Liabilities
2.19.1 Provisions:
A provision is recognized when the Company has
a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates. If the effect of the time value of
money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting
is used, the increase in the provision due to the
passage of time is recognized as a finance cost.
When the Company expects some or all of a
provision to be reimbursed, reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting
is used, the increase in the provision due to the
passage of time is recognised as a finance cost in
respective expense.
2.19.2 Provision for Defects Liabilities and Repairs
As per, Real Estate (Regulation and Development)
Act, 2016 (RERA) vide section 14(3) a builder or
developer will be liable to repair any defect, on the
building sold, for a period of Five years. Further,
as per the terms of contracts with customers, the
company is liable for any defects, repairs and
other claims for crtain period after completion
and handover of the possession of developed
properties. Provision for defect liability and
repairs is recognized when sales from contracts
with customer is recognized. Certain percentage
to the sales recognised is applied for the current
accounting period to derive the provision
for expense to be accrued. The recognition
percentage is based on management estimates
of the possible future incidence. The claims
against defect liability and repairs from customers
may not exactly match the historical percentage,
so such estimates are reviewed annually for any
material changes in assumptions and likelihood of
occurrence and revised accordingly.
2.19.3 Contingent Liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases, where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses
its existence in the financial statements unless the
probability of outflow of resources is remote.
2.20 Fair value measurement
that would be received to sell an asset or paid to
transfer a liability in an ordinary transaction between
market participants at the measurement date. The fair
value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability
takes place either:
• In the principal market for asset or liability, or
• In the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must
be accessible by the Company. The fair value of an
asset or liability is measured using the assumptions that
market participants would use when pricing the asset
or liability, assuming that market participants act in
their economic best interest. A fair value measurement
of a non- financial asset takes into account a market
participant's ability to generate economic benefits by
using the asset in its highest and best use or by selling
it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:
• Level 1- Quoted(unadjusted) market prices in
active markets for identical assets or liabilities
• Level 2- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to
fair value measurement as a whole) at the end of each
reporting period.
For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.
2.21 Critical accounting estimates, judgement and
assumptions
The preparation of these standalone financial
statements requires the management to make
judgments, use estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty
about these judgements, assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying amount of the asset or
liability affected in future periods.
i. Taxes
Uncertainties exist with respect to the interpretation
of tax regulations, changes in tax laws, and the
amount and timing of future taxable income.
Given the wide range of business relationships
differences arising between the actual results
and the assumptions made, or future changes
to such assumptions, could necessitate future
adjustments to tax income and expense already
recorded. The Company establishes provisions,
based on reasonable estimates. The amount of
such provisions is based on various factors, such
as experience of previous tax assessments and
differing interpretations of tax regulations by the
taxable entity and the responsible tax authority.
ii. Employee benefit plans
The cost of defined benefit plans (i.e. Gratuity
benefit) is determined using actuarial valuations.
An actuarial valuation involves making various
assumptions which may differ from actual
developments in the future. These include the
determination of the discount rate, future salary
increases, mortality rates and future pension
increases. Due to the complexity of the valuation,
the underlying assumptions and its long-term
nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting
date. In determining the appropriate discount
rate, management considers the interest rates of
long term government bonds with extrapolated
maturity corresponding to the expected duration
of the defined benefit obligation. The mortality
rate is based on publicly available mortality tables
for India. Future salary increases and pension
increases are based on expected future inflation
rates for India.
iii. Contingencies
Contingent liabilities may arise from the ordinary
course of business in relation to claims against the
Company, including legal, contractor and other
claims. By their nature, contingencies will be
resolved only when one or more uncertain future
events occur or fail to occur. The assessment
of the existence, and potential quantum, of
contingencies inherently involves the exercise of
significant judgement and the use of estimates
regarding the outcome of future events.
iv. Property Plant and Equipment
Property, Plant and Equipment represent
significant portion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining an
estimate of assets expected useful life and
expected value at the end of its useful life. The
useful life and residual value of Company's assets
are determined by Management at the time asset
is acquired and reviewed periodically including
at the end of each year. The useful life is based
on historical experience with similar assets, in
anticipation of future events, which may have
impact on their life such as change in technology.
v. Impairment of non-financial assets
The Company assesses at each reporting date
whether there is an indication that an asset
including intangible assets having indefinite useful
life and goodwill may be impaired. If any indication
exists, or when annual impairment testing for an
asset is required, the Company estimates the
asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's CGU'S fair value
less cost of disposal and its value in use. Where
the carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount. In assessing value in use, the estimated
future cash flows are estimated based on past
trend and discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions can
be identified, an appropriate valuation model is
used. These calculations are corroborated by
valuation multiples, or other fair value indicators.
vi. Provisions for Defect liability and repairs
As per, Real Estate (Regulation and Development)
Act, 2016 (RERA) vide section 14(3) a builder or
developer will be liable to repair any defect, on the
building sold, for a period of Five years. Further,
as per the terms of contracts with customers, the
company is liable for any defects, repairs and
other claims for crtain period after completion
and handover of the possession of developed
properties. Provision for defect liability and
repairs is recognized when sales from contracts
with customer is recognized. Certain percentage
to the sales recognised is applied for the current
accounting period to derive the provision
for expense to be accrued. The recognition
percentage is based on management estimates
of the possible future incidence. The claims
against defect liability and repairs from customers
may not exactly match the historical percentage,
so such estimates are reviewed annually for any
material changes in assumptions and likelihood of
occurrence and revised accordingly.
vii. Provision for expected credit losses (ECL) of
trade receivables and contract assets
The company follows 'simplified approach'
for recognition of impairment loss allowance
on trade receivables. Under this approach the
company does not track changes in credit risk
but recognizes impairment loss allowance based
on lifetime ECLs at each reporting date. For this
purpose the company uses a provision matrix to
determine the impairment loss allowance on the
portfolio of trade receivables. The said matrix is
based on historically observed default rates over
the expected life of the trade receivables duly
adjusted for forward looking estimates.
For recognition of impairment loss on other
financial assets and risk exposures, the company
determines whether there has been a significant
increase in the credit risk since initial recognition.
If credit risk has not increased significantly,
12-month expected credit loss(ECL) is used to
provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is
used. If, in a subsequent period, credit quality
of the instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the company reverts to
recognizing impairment loss allowance based
on 12-month ECL.
For assessing increase in credit risk and impairment
loss, the Company combines financial instruments
on the basis of shared credit risk characteristics
with the objective of facilitating an analysis that is
designed to enable significant increases in credit
risk to be identified on a timely basis.
Lifetime ECL are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument. The
12-month ECL is a portion of the lifetime ECL
which results from default events on a financial
instrument that are possible within 12 months
after the reporting date.
ECL is the difference between all contractual cash
flows that are due to the company in accordance
with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. The ECL impairment
loss allowance (or reversal) recognized during the
period in the statement of profit and loss and
the cumulative loss is reduced from the carrying
amount of the asset until it meets the write off
criteria, which is generally when no cash flows are
expected to be realised from the asset.
viii. Impairment for Investments in Subsidiary &
Assocites
Determining whether the investments in
subsidiaries are impaired requires an estimate in
the value in use of investments. In considering the
value in use, the Directors have anticipated the
future operating margins, resources and availability
of infrastructure, discount rates and other factors
of the underlying businesses/operations of the
investee companies. Any subsequent changes
to the cash flows due to changes in the above-
mentioned factors could impact the carrying value
of investments.
ix. Leases
The Company determines the lease term as the
non-cancellable term of the lease, together with
any periods covered by an option to extend the
lease if it is reasonably certain to be exercised, or
any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.
Wherever, lease contracts that include extension
and termination options, the Company applies
judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to
renew or terminate the lease. That is, it considers
all relevant factors that create an economic
incentive for it to exercise either the renewal or
termination. After the commencement date,
the Company reassesses the lease term if there
is a significant event or change in circumstances
that is within its control and affects its ability to
exercise or not to exercise the option to renew
or to terminate.
2.22 Recent Indian Accounting Standards (Ind AS)
Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended
March 31,2026, MCA has notified certain amendments
to Ind AS 21- Effects of changes in Foreign Exchange
Rates, Ind AS 1- Presentation of Financial Statements,
Ind AS 7- Statement of Cash Flow, Ind AS 107-Financial
Instruments (Supplier Finance Arrangement) and Ind
AS 12- International Tax Reform- Pillar Two Model
Rules which are applicable from April 1,2025.
The Company has evaluated all these amendments and
has determined that it does not have any significant
impact on its financial statements.
14.1 The average credit period on sales of goods is 15 days.
14.2 Considering the inherent nature of business of the Company, Customer credit risk is minimal. The Company generally
does not part away with its assets unless trade receivables are fully realised. Wherever there is doubt on recovery, the
Company makes adequate provision based on best estimation of recovery.
Based on prior experience and an assessment of the current economic environment, management believes there is
no credit risk provision required, other than those made in the accounts, if any. Also the Company does not have any
significant concentration of credit risk.
17. Equity share capital (Contd..)17.6 Pre-IPO Placement
During the year ended March 31, 2025, the company has allotted a Pre-IPO placement of 16,26,016 equity shares of
face value of H10 each by way of a private placement at an issue price of H123 per equity share (including share premium
of H 113 per equity share) for an aggregate consideration of H 2000.00 lakhs vide resolution passed in the meeting of
shareholders held on July 13, 2024.
17.7 Initial Public offering and listing of shares
During the year ended March 31,2025, the company has completed an Initial Public Offer ("the IPO") of fresh issue of
3,20,37,601 equity shares with a face value of H 10 each at an issue price of H 128 per share (includes 1,62,601 equity
shares issued to eligible employees with a face value of H 10 each at an issue price of H 123 per share) aggregating to
H 4100.00 million.The equity shares of the Company were listed on National Stock Exchange ("NSE") and on Bombay
Stock Exchange Limited ("BSE") on September 24, 2024.
25. Revenue from operations (Contd..)
25.1 The company has not provided impairment losses, based on expected credit loss policy on trade receivable recognised
in statement of profit and loss for the year ended March 31,2026 and March 31,2025.
25.2 Contract balances
Refer details of trade receivables in note 14 & advance from customers in note 23
25.3 The Group receives payments from customers as per agreed contractual terms and payment schedules. Accounts
receivable are recorded when the right to consideration becomes unconditional.
35.1 * The figures for the financial year ended March 31, 2026 and March 31, 2025 includes the amount of contingent
liabilities for the respective year, where show cause notice or claims have been received after the close of respective
reporting period and till the date of approval of this fianncial statements by the Board of Directors. Further, the amount
of contingent liabilities disclosed above, does not include the amount of interest or penalty, wherever the same are not
ascertain or included in demand notices.
35.2 The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, the
impact of which presently is not quantifiable. These cases are pending with various courts / authorities. After considering
the circumstances and advice from the legal advisors, management believes that these cases will not adversely affect its
financial statements. The above Contingent Liabilities exclude undeterminable outcome of these pending litigations.
35.3 Future cash flow in respect of the above, if any, is determinable only on receipt of judgements/decisions pending with
the relevant authorities. Interest, penalty or compensation liability arising on outcome of the disputes has not been
considered, since not determinable at present.
35.4 The Company did not have any long-term contracts including derivative contracts for which any provision was required
for foreseeable losses.
36. Segment information
For management purposes, the Company is into one reportable segment i.e. Real Estate development.
The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results of the
Company for the purpose of making decisions about resource allocation and performance assessment. The Company's
performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements.
Also, the Company's financing (including finance costs and finance income) and income taxes are managed on a Company basis
36.1 Geographical information
The Company operates in one geographical environment only i.e. in India.
The Company's revenue from continuing operations from external customers by location of operations and information
about its non-current assets by location of assets are detailed below:
36.2 Information about major customers
No single customer contributed 10% or more to the Company's revenue for the year ended March 31, 2026,
March 31,2025.
36.3 The reporting segment includes a number of sales operations in various cities within India each of which is considered as
a separate operating segment by the CODM. For financial statements presentation purposes, these individual operating
segments have been aggregated into a single reportable operating segment taking into account the following factors:
• these operating segments have similar long-term gross profit margins;
• the nature of the products and production processes are similar; and
• the methods used to distribute the products to the customers are the same.
37. Employee benefit plans37.1 Defined contribution plans:
The Company participates in Provident fund as defined contribution plans on behalf of relevant personnel. Any expense
recognised in relation to provident fund represents the value of contributions payable during the period by The
Company at rates specified by the rules of provident fund. The only amounts included in the balance sheet are those
relating to the prior months contributions that were not paid until after the end of the reporting period.
(a) Provident fund and pension
In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees
of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in
which both employees and the Company make monthly contributions at a specified percentage of the covered
employees' salary. The contributions, as specified under the law, are made to the provident fund administered and
managed by Government of India (GOI). The Company has no further obligations under the fund managed by the
GOI beyond its monthly contributions which are charged to the statement of Profit and Loss in the period they are
incurred. The benefits are paid to employees on their retirement or resignation from the Company.
37. Employee benefit plans (Contd..)
(b) Defined benefit plans:
Gratuity (Unfunded)
The Company has an obligation towards gratuity, a unfunded defined benefit retirement plan covering all
employees. The plan provides for lump sum payment to vested employees at retirement or at death while in
employment or on termination of the employment of an amount equivalent to 15 days salary, as applicable,
payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company
accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.
The most recent actuarial valuation of the present value of the defined benefit obligation was carried out for
the year ended March 31, 2026 by an independent actuary. As per revised provision under social security code
become effective from 21-11-2026.The present value of the defined benefit obligation, and the related current
service cost and past service cost, were measured using the projected unit credit method.
(A) Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:
(1) Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
i) Adverse Salary Growth Experience
ii) Variability in mortality rates
iii) Variability in withdrawal rates
(2) Investment Risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets
is independent of the future discount rate. This can result in wide fluctuations in the net liability or the
funded status if there are significant changes in the discount rate during the inter- valuation period.
(3) Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant
level of benefits. If some of such employees resign/retire from the company there can be strain
on the cashflows.
(4) Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit
Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/
government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the
valuation date.
(5) Legislative Risk
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change
in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation and the same will have to be recognized immediately in the year when any
such amendment is effective.
(J) Sensitivity analysis
The Sensitivity analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
These sensitivities show the hypothetical impact of a change in each of the lied assumptions in isolation.
While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely
change in isolation and the asset value changes may offset the impact to some extent. For presenting the
sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the
Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in
the preparation of the Sensitivity Analysis from previous year.
(K) Other disclosures
The weighted average duration of the obligations as at March 2026 is 6.82 years (March 31,2025: 6.79 years).
(c) Leave Encashment plan
(A) Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:
(1) Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
i) Adverse Salary Growth Experience
ii) Variability in mortality rates
iii) Variability in withdrawal rates
iv) Variability in availment rates
(2) Investment Risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets
is independent of the future discount rate. This can result in wide fluctuations in the net liability or the
funded status if there are significant changes in the discount rate during the inter- valuation period.
(3) Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level
of benefits. If some of such employees resign/retire from the Entity there can be strain on the cash flows.
(4) Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit
Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/
government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the
valuation date.Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.
(5) Legislative Risk
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in
the legislation/regulation. The government may amend the Shop and Establishment Act, thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation and the same will have to be recognized immediately in the year when any
such amendment is effective.
(J) Sensitivity analysis
The Sensitivity analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
These sensitivities show the hypothetical impact of a change in each of the lied assumptions in isolation.
While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely
change in isolation and the asset value changes may offset the impact to some extent. For presenting the
sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the
Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in
the preparation of the Sensitivity Analysis from previous year.
39. Financial instruments and risk management39.1 Capital risk management
The Company's objective, when managing capital is to ensure the going concern operation and to maintain an efficient
capital structure to reduce the cost of capital, support the corporate strategy and meet shareholder's expectations.
The policy of the Company is to borrow funds through banks or raise through equity which is supported by committed
borrowing facilities to meet anticipated funding requirements. The Company manages its capital structure and makes
adjustments in the light of changes in economic conditions and the requirement of financial markets. The capital
structure is governed by policies approved by the Board of Directors, and is monitored by various metrics. The following
table summarises the capital of the Company :
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings.
The Company has not defaulted on any loans payable, and there has been no breach of any loan covenants.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,
2026 and March 31, 2025.
39.3 Financial risk management objectives
The Company's principal financial liabilities comprise loans and borrowings and trade and other payables. The main
purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets
include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company periodically reviews the risk
management policy so that the management manages the risk through properly defined mechanism. The focus is
to foresee the unpredictability and minimise potential adverse effects on the Company's financial performance. The
Company's overall risk management procedures to minimise the potential adverse effects of financial market on the
Company's performance are as follows:
(i). Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price
risk, such as equity price risk and commodity risk.
(a) Interest rate risk:
The Company is exposed to cash flow interest rate risk from long-term borrowings at variable rate. Currently
the Company has external borrowings and borowwings from promoter & promoter groups which are fixed
and floating rate borrowings. The Company achieves the optimum interest rate profile by refinancing when
the interest rates go down. However this does not protect Company entirely from the risk of paying rates
in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest
payments, it considers that it achieves an appropriate balance of exposure to these risks.
(b) Foreign currency risk:
Foreign Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which
are denominated in currencies other than Indian Rupee.
(ii) . Credit risk management
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign
exchange transactions and other financial instruments.
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the Company's customer base, including the default risk of the industry and country, in which
customers operate, has less influence on the credit risk.
The Company has entered into contracts for the sale of residential and commercial units on an installment basis.
The installments are specified in the contracts. The Company is exposed to credit risk in respect of installments
due. However, the possession of residential and commercial units is handed over to the buyer only after all the
installments are recovered. In addition, installment dues are monitored on an ongoing basis with the result that
the Company's exposure to credit risk is not significant. The Company evaluates the concentration of risk with
respect to trade receivables as low, as none of its customers constitutes significant portions of trade receivables as
at the year end.
Credit risk from balances with banks and financial institutions is managed by Company's treasury in accordance
with the Company's policy. The company limits its exposure to credit risk by only placing balances with local banks
of good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting
its obligations.
(iii) . Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated
with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result
from an inability to sell a financial asset quickly at close to its fair value. The Company has an established liquidity
risk management framework for managing its short term, medium term and long term funding and liquidity
management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the
maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds
in cash and cash equivalents.
Surplus funds not immediately required are invested in certain financial assets which provide flexibility to liquidate
at short notice and are included in cash equivalents.
39.4 Stock Option
The Board of Directors, at its meeting held on 24th January, 2025, approved the implementation of the " ARKADE
DEVELOPERS ESOP 2025" for the grant of up to 40000 stock options to eligible employees, which was subsequently
approved by the shareholders through Postal Ballot on 19th April, 2025. Further, the board, at its meeting held on 13th
May, 2025, approved an amendment to the scheme by increasing the number of stock from 40,000 to 2,40,000, which
was approved by the shareholder at the 39th Annual General Meeting held on 24th September,2025.
As per the Scheme,the option can be excersied within a period of 4 years from the date Vesting period. The expense
recognised for the Share option during the year ended March 31,2026 is H20.34 Lakhs. There are no cancellation or
modification to the ESOP Option during the year ended March 31,2026.
40. Fair value measurements
This note provides information about how the Company determines fair values of various financial assets and financial liabilities.
40.1 Fair value of the Company's financial assets and financial liabilities that are measured at fair value on
a recurring basis
The Company has not measure any financial assets and financial liabilities that are measured at fair value on a
recurring basis.
40.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value
disclosures are required)
The directors of the Company consider that the carrying amounts of financial assets and financial liabilities recognised
in these financial statements approximate their fair values.
41. Disclosure as per Section 186 of the Companies Act, 2013
The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies
(Meetings of Board and its Powers) Rules, 2014 are as follows:
(i) Details of Investments made by the Company are given in Note 7 in the financial statement.
(ii) The Company has not granted any loans to any parties during the period except loans and advances to employees and
loan to subsidiary in the ordinary course of business, are given in the Financial statement.
42. Other Notes
42.1 The Company has sanctioned limits from banks on the basis of security of current assets. The quarterly / monthly
returns or statements current assets filed by the company with the banks are in agreement with the books of accounts.
42.2 The Company does not own benami properties. Further, there are no proceedings which have been initiated or are
pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and rules made thereunder.
42. Other Notes (Contd..)
42.3 The Company has not traded or invested in Crypto currency or Virtual Currency during each reporting period. During
each reporting period, the Company has not traded or invested in Crypto currency or Virtual Currency.
42.4 The Company entered into a Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013, for the
merger of Rental business of Filmistan Private Limited with Arkade Developers Limited. The Scheme was approved by the
Hon'ble NCLT, Mumbai Bench, and became effective on 16-03-2026. The Company has complied with the accounting
and disclosure requirements prescribed under the applicable Indian Accounting Standards and the approved Scheme
42.5 Relationship with struck-off companies
The Company did not have any transactions with Companies struck off.
42.6 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
42.7 The Company has not made any delay in Registration of Charges under the Companies Act, 2013.
42.8 Code of Social Security, 2020
The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Now, the
code became applicable from 21 November 2026 and the Company has assessed the impact of the Code accordingly.
44. Appreciation in value of landa) Thane Land
During the year, the Company acquired land bearing CTS No. 116, Survey Nos. 96, 97, 98 and 99 and Survey No. 47,
Hissa No. 1, situated at Ghodbunder Road, Village Boriwade, District Thane, for a consideration of Rs. 16,119.43 lakhs.
Subsequent to acquisition, the market value of the said land has increased by an estimated Rs.12,354.57 lakhs, solely
on account of the judgement of the Hon'ble Supreme Court dated 5th August 2025, pursuant to which the interim
stay earlier granted by the Hon'ble Supreme Court was vacated, thereby resolving the uncertainty that had previously
existed regarding the applicable Environmental Clearance mechanism for the said land. The said land is held by the
Company as inventory and, in accordance with Ind AS 2 - Inventories, is carried at the lower of cost and net realisable
value; as cost continues to be lower than net realisable value, no upward adjustment has been recognised on account of
the aforesaid increase, and the carrying amount as at 31 March 2026 continues to be determined in accordance with Ind
AS 2. Accordingly, the said appreciation represents an unrealised notional gain as at the reporting date, and no income,
gain or asset has been recognised in respect thereof. The impact of such appreciation, including its characterisation for
tax purposes, shall be evaluated by the management with reference to the facts and circumstances prevailing at the
relevant time and in accordance with applicable law.
b) Goregaon Land
During the year, the Company acquired land bearing CTS Nos. 296, 296/1 to 296/32, Village Pahadi, Goregaon (West),
Taluka Borivali, Mumbai Suburban District, Mumbai - 400062 for a consideration of Rs. 16,500.00 lakhs. Pursuant to
the Scheme of Demerger/Arrangement, with 1 August 2025 as the appointed date, the Company received the tenancy
rights in respect of the said land. Thereafter, the market value of the said land has increased by an estimated Rs.
11,098.94 lakhs, solely on account of the judgement of the Hon'ble Supreme Court dated 5th August 2025, pursuant
to which the interim stay earlier granted by the Hon'ble Supreme Court was vacated, thereby resolving the uncertainty
that had previously existed regarding the applicable Environmental Clearance mechanism for the said land. The said
land is held by the Company as inventory and, in accordance with Ind AS 2 - Inventories, is carried at the lower of
cost and net realisable value; as cost continues to be lower than net realisable value, no upward adjustment has
been recognised on account of the aforesaid increase, and the carrying amount as at 31 March 2026 continues to be
determined in accordance with Ind AS 2. Accordingly, the said appreciation represents an unrealised notional gain
as at the reporting date, and no income, gain or asset has been recognised in respect thereof. The impact of such
appreciation, including its characterisation for tax purposes, shall be evaluated by the management with reference to
the facts and circumstances prevailing at the relevant time and in accordance with applicable law.
45 Stock Option
The Board of Directors, at its meeting held on 24th January, 2025, approved the implementation of the " ARKADE
DEVELOPERS ESOP 2025" for the grant of up to 40000 stock options to eligible employees, which was subsequently
approved by the shareholders through Postal Ballot on 19th April, 2025. Further, the board, at its meeting held on 13th
May, 2025, approved an amendment to the scheme by increasing the number of stock from 40,000 to 2,40,000, which was
approved by the shareholder at the 39th Annual General Meeting held on 24th September,2025.
As per the Scheme,the option can be excersied within a period of 4 years from the date Vesting period. The expense
recognised for the Share option during the year ended March 31, 2026 is H20.34 Lakhs. There are no cancellation or
modification to the ESOP Option during the year ended March 31,2026.
46. Scheme of Arrangement/ Demerger
The Board of directors of the Applicant Companies, in their respective Board Meetings on 29-09-2025, have approved
the scheme of arrangement between Filmistan Private Limited and Arkade Developers Limited. The Scheme entails the
demerger of the Rental business from Filmistan Private Limited into Arkade Developers Limited, with an appointed date of
01 August 2025.
46. Scheme of Arrangement/ Demerger (Contd..)
The Hon'ble National Company Law Tribunal ("NCLT"), [Mumbai Bench], vide its order dated (16-03-2026), approved the
Scheme of Arrangement ("the Scheme") under Sections 230 to 232 and other applicable provisions of the Companies Act,
2013, between Filmistan Private Limited ("Demerged Company") and Arkade Developers Limited ("Resulting Company").
Pursuant to the Scheme, the Filmistan Private Limited has demerged the Rental business and transferred to Arkade
Developers Limited on a going concern basis from the Appointed Date i.e. (1-08-2025). The Scheme became effective from
(25-03-2026) upon filing of the certified copy of the NCLT order with the Registrar of Companies.
From the Appointed date, the Rental business of Filmistan Private Limited, including all Assets & Liabilities is transferred and
vested to Arkade Developers Limited in accordance with the scheme.
46. Scheme of Arrangement/ Demerger (Contd..)
Pursuant to the approved Scheme of Demerger, the Resulting Company is entitled to a settlement amount of Rs. 86.19 lakhs .
During the year ended 31 March 2026, the Company received Rs. 80 lakhs towards the said settlement. The balance amount
of Rs. 6.19 lakhs Lakhs is outstanding as at 31 March 2026 and is considered good and recoverable by the management.
47. Exceptional Items
During the year ended March 31, 2026, the Company has assessed the recoverability of its investment in Filmistan Private
Limited (WOS) based on current financial position and future cash flow projections of the subsidiary. Post Demerger of the
Rental business from Filmistan Private Limited to Arkade Developers Limited, the impairment loss on Dimnition in value
of Investment has been recognized in the Statement of Profit and Loss under the head "Exceptional Items" comprises
an amount of H18,217.09 lakhs in accordance with the requirements of Ind AS 36 - Impairment of Assets and Ind AS 27 -
Separate Financial Statements.
48 . Initial Public Proceeds Utilization :
During the year ended 31.03.2025, the company has completed an Initial Public Offer ("the IPO") of fresh issue of 3,20,37,601
equity shares with a face value of INR 10 each at an issue price of INR 128 per share (includes 1,62,601 equity shares issued
to eligible employees with a face value of INR 10 each at an issue price of INR 123 per share) aggregating to Rs. 41000.00
lakhs.The equity shares of the Company were listed on National Stock Exchange ("NSE") and on Bombay Stock Exchangeve
been fully utilised by March 31,2026, in accordance with the objects of the issue.
|